Blockchain advisory services 2018-02-13T15:57:20+00:00

Blockchain advisory services

Token economy design and token sales

We are a blockchain investment and advisory services company that specializes in token economy design, implementation and maintenance. We also work with broker-dealer partners to complete regulated token pre-sales and public sales for token issuances.

Many startups have started to look at creating private money using blockchain technology. Cryptographic tokenization is the process of creating such a blockchain-based currency that can function as a unit of account, store of value, medium of exchange and stake. Unfortunately issuing a token alone is not enough for the token to attract and retain value. If the token serves no clear and necessary purpose in the network or product for which it was issued, then it will become worthless to users and backers that purchased the token in either the token sale or on cryptocurrency exchanges.

A number of software platforms and service providers have recently sprung up offering token sale demand generation, but as the number of token sale opportunities has mushroomed, these vendors have become touts in bazaars – adding little value to either token issuers or backers aside from access and awareness. Unfortunately, this means that most tokens that are sold today will become worthless – they weren’t well designed to begin with and they’re not implemented to ensure that they have high network utility and appropriate velocity.

Recent experience:

Wala Financial Platform (DALA)

Sold a limited release of $1.2 million in Dala tokens during December 2017 to power financial services for the next 3.5 billion people in emerging markets. The Dala token, to be used in the Wala Financial Platform and with other financial services partners, has already driven best practices in governance and developing ecosystem value.

Wala’s partners include FINCA Impact Finance, a microfinance bank operating in 20 countries across the globe, M-vendr, a mobile Point of Sale (PoS) provider with over 30,000 merchants across 15 countries, ECB, a banking technology consulting company in a Zimbabwe-wide partnership, and Veridium, a leader in strong authentication using biometrics in a project backed by the Bill and Melinda Gates Foundation.

The Dala Corporation retained 40% of tokens to drive adoption of the Dala ecosystem, 30% has and will be issued to backers and 30% was issued to Wala as the initial partner of the Dala ecosystem. The Dala whitepaper outlines its unique approach to deploying cryptocurrency to solve a very big problem.

Civic (CVC)

Sold $33 million in CVC tokens during June 2017 for a blockchain-based decentralized identity management platform based out of Palo Alto, U.S. Vinny Lingham made the bold decision to not offer discounts or bonuses in either the pre-sale or public sale and put a cap on the amount raised, a first at the time. This allowed small buyers to participate on the same terms as hedge funds and drove broad awareness of the project.

Civic retained 33% of the token allocation, 33% was sold in the token sale and 33% was allocated for distribution to incentivise ecosystem participation. The Civic token sale process has been lauded by crypto experts as the new standard in best practice for token sales.

Newtown Partners redesigned and updated Civic’s token economy during February 2018 to bring it back in line with best practices.

Augmentors (Databits – DTB)

Sold $1 million in DTB tokens during February 2017 to power the economy of an augmented reality video game. This was the most successful video gaming token sale conducted at the time and the first token sale conducted by a South African startup. Augmentors retained 30% of the token allocation and 70% was sold in the token sale.

The  Augmentors’ token (DTB) economy was designed by Newtown Partners to align the interest of the Augmentors business, the backers, the players and all other network participants.

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